GrowMax Resources Corp.
TSX VENTURE : GRO

GrowMax Resources Corp.

February 06, 2017 08:45 ET

GrowMax Announces Results of Sulfate of Potash Study

CALGARY, ALBERTA--(Marketwired - Feb. 6, 2017) - GrowMax Resources Corp. (TSX VENTURE:GRO) ("GrowMax" or the "Company") is pleased to provide this update based on the previously announced engagement of Advisian, the consulting arm of the WorleyParsons Group ("Advisian"), to assist the Company with the provision of a design and engineering study for a pilot potash project on the Company's Bayovar Property. The study included capital and operating cost estimates for a pilot facility, including evaporation ponds and a process plant, for the production of 5,000 tonnes per year of soluble SOP.

Sulfate of Potash ("SOP")

GrowMax has conducted preliminary market investigations which indicate that there is significant local demand in Peru for soluble SOP, a specialty fertilizer product used in fruit and vegetable irrigation projects, particularly in arid climates such as the coastal regions of Peru. Government of Peru data shows that SOP imports in Peru averaged a landed price of over US$600/tonne in 2016.

Summary Assumptions and Results

The study assumes that the Company's existing test wells can produce sufficient brine with concentrations of Potassium and other minerals to feed the processes as contemplated.

The pilot facility design envisions the production of Kainite and Carnallite from evaporation ponds covering approximately 50 hectares, and the processing of those minerals to produce 5,000 tonnes per year of soluble SOP. The production process is also expected to produce 185,000 tonnes per year of Sodium Chloride (NaCl) salt.

The following are the capital and operating cost estimates developed by Advisian (2016 US$) for the pilot project:

Project CAPEX US$19.8 million
Annual OPEX US$2.1 million

GrowMax's 2017 budget includes a work program to advance the SOP pilot project by securing the necessary environmental permits and government approvals required to initiate construction of the initial 50 hectares of solar evaporation ponds in the second half of 2017. Based upon Kainite and Carnallite production results from the solar evaporation ponds, the Company will plan to start construction of the SOP plant in 2018.

Abby Badwi, Executive Chairman of GrowMax, commented, "GrowMax management is encouraged by the results of this study and will pursue the Company's vision of generating early cash flow through its fertilizer business initiatives. This approach will run in parallel with our initiatives to pursue different fertilizer products such as SSP and the development of the Company's phosphate rock mining assets at Bayovar in Peru."

About GrowMax Resources Corp.

GrowMax Resources Corp. is a publicly listed Canadian company (Ticker GRO on TSX-V) focused on exploration and development of phosphate and potassium-rich brine resources on its Bayovar Property, which is located in the Sechura Desert in northwestern Peru. The Company's vision is to become a leading producer of phosphate and potash fertilizer products in Peru.

GrowMax owns approximately 92% of GrowMax Agri Corp., a private company that owns 100% of the Bayovar Property, which currently covers approximately 227,000 gross acres. The Indian Farmers Fertiliser Co-operative Limited (IFFCO) and its affiliates own approximately 8% of GrowMax Agri Corp.

Forward-Looking Statements

Certain statements contained in this press release may constitute "forward-looking information" as such term is used in applicable Canadian and US securities laws. Any information or statements contained herein that express or involve discussions with respect to predictions, expectations, plans, projections, objectives, assumptions or future events should be viewed as forward-looking information. Such forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different than those results, performance or achievements expressed or implied by such forward-looking information.

In particular, statements express or implied regarding the timing of any future project, the capital or operating costs of such a project and the price to be received from soluble SOP and salt produced therefrom should be considered as forward-looking information.

The Company cautions that it has not completed any feasibility studies on its potash project at Bayovar, and no mineral reserve or mineral resource estimates have been established for SOP on the Bayovar Property. Accordingly, the economic viability of the Bayovar potash project has not been established. Although the Company believes the Advisian design and engineering study and its preliminary market investigations support the Company proceeding with additional exploration, evaluation and development work on the project, the Advisian study should not be considered a definitive study for the potential development and operation of an SOP plant on the Bayovar Property.

Forward-looking information and statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking information or statements should these beliefs, estimates and opinions or other circumstances change, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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